A Georgia nursing home business manager is facing nearly 80 felony charges related to elder abuse and fraud. According to police the 28-year-old woman allegedly embezzled over $50,000 from the accounts she managed. The investigation began when nursing home officials flagged a suspicious transaction on February 12. This led to the discovery of numerous other instances of fraudulent activity.
The business manager had reportedly used a debit card linked to one of the residents. The subsequent investigation revealed that she created fake invoices for residents and then issued company checks to herself. She then deposited these checks to her personal bank account via a mobile app.
Initially charged with theft by conversion, identity theft, and financial transaction card fraud, her actions prompted a forensic audit of the nursing home’s financial records. The audit revealed that she had also drained the bank accounts of at least 38 other residents during her tenure as a business manager at the facility. Some of the victims were deceased. Police confirmed that the total amount misappropriated stands at $53,885, with one resident having suffered a loss of over $10,000.
The business manager was taken into custody on February 20, facing 78 counts related to fraud and elderly abuse. She was released on a $50,000 bond. According to the chief of police, a second audit is currently underway and it’s very likely that she will be facing more charges.
Compliance Perspective
Issue
F602 in the State Operations Manual, Appendix PP, states that residents have the right to be free from abuse, neglect, and misappropriation of resident property. Every nursing facility should have a double check system in place for all monetary transactions, and all transactions should be reviewed and approved by a second party to prevent misappropriation of funds. Facilities are required to report any allegations of misappropriation or exploitation of a resident’s funds or personal property to local authorities as well as the state agency. Misappropriation of funds can result in fines, other sanctions, and imprisonment.
Discussion Points
- Review the facility’s policies and procedures on accounting and the use of facility and resident funds. Update as necessary.
- Train appropriate staff on your policies for financial accounting and the protection and approved use of facility and resident funds. Document that these trainings occurred and file in each employee’s education file. Provide education to residents and their representatives at Resident and Family Council meetings or via newsletters or postings on facility bulletin boards about the importance of monitoring their bank and credit card statements regularly and keeping credit and debit cards secure.
- Periodically audit to ensure that all monetary transactions have been double-checked and approved by a second party, and that all transactions have been previously approved, including those accessing resident funds. Ensure that an independent audit is conducted at least annually. Also audit staff understanding to ensure that they are aware of the steps that should be taken if they suspect theft, and their reporting options, including the use of the anonymous hotline.
*This news alert has been prepared by Med-Net Concepts, LLC for informational purposes only and is not intended to provide legal advice.*
